The Role Of Small And Medium Enterprises In The Economic Development

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


Abstract


This study examines the role of small and medium businesses in the economic development of Ghana. The research assesses the mechanisms established by government and its agencies to assist in sustaining and promoting small and medium enterprises (SMEs) in Ghana. The study further fo-cuses on the source of finance for SMEs, problems encountered and the role of other stakeholders.

The purpose of this study is to determine the effect SMEs have on the Ghanaian economy in terms of economic growth and the need for promoting and sustaining such businesses. The research was conducted in the Greater Accra region. Information was gathered by interviewing entrepreneurs whose businesses are classified as SMEs together with other stakeholders. These interviews repre-sent the primary sources of data collected. The secondary sources of data were obtained from articles, journals, and other printed and electronic publications. Tertiary data were collected from the Ghana Statistical service, Wikipedia and dictionaries. The data collected were as ana-lyzed in qualitative and quantitative terms using predictive analysis software statistics tool.

The empirical section of the study examined and reviewed theories on the concept and character-istics of SMEs with common constraints associated with all SMEs

The result obtained from the study indicated that SMEs in Ghana are a major contributor to the total GDP and employ a large number of the active populace but they are faced with numerous challenges and the government is doing little to address these problems. A detailed conclusion is presented in the study with recommendations on how to sustain, promote, finance, and attract aspiring entrepreneurs.


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